Asian Development Bank provides $34 million loan to Bank Respublika
The Asian Development Bank has completed the disbursement of a local currency loan equivalent to $34 million to expand access to finance in Azerbaijan.
Abdulrahman Sadikhli2 min read
The Asian Development Bank (ADB) has provided a local currency loan equivalent to 34 million US dollars to Azerbaijan's Bank Respublika. The funding has already been fully disbursed to the borrower.
According to the repayment schedule, the loan will be repaid in two tranches. A payment of 14.5 million manats is scheduled for December 2026, and the remaining 19.5 million manats are to be repaid in February 2027.
The main goal of the project is to address the financing gap in the micro, small, and medium-sized enterprise (MSME) sector, particularly for women entrepreneurs and those in the agricultural sector. The ADB noted that the project contributes to expanding access to credit resources in rural areas and the micro-enterprise segment.
The Asian Development Bank emphasized that this transaction aligns with the priorities of its 'Strategy 2030,' including poverty reduction, addressing inequality, ensuring gender equality, as well as rural development and food security. The project aims to strengthen economic activity in non-oil sectors and promote regional development in Azerbaijan.
The deal is also consistent with the ADB's 'Country Partnership Strategy' for Azerbaijan for 2019–2023, which aims to build a resilient private sector and develop an inclusive financial market. Furthermore, the initiative aligns with the ADB's operational plan for Azerbaijan for 2021–2023, which provides for support to small and medium-sized businesses through the provision of credit lines.
Source: trend.az
